Starting a business in any domain is never easy, however the idea itself is usually met with enthusiasm by the future business owner. One of the reasons behind this enthusiasm is the connections you can make because of the Internet we all use nowadays to complete different tasks. The same Internet is “guilty” for the appearance of new industries and the expansion of others. However, there are sectors which go back and have never changed, but they did improve.
One of these industries is recruitment as we see job advertisements on the streets and on the Internet at pretty much every step, respectively every click. This is the kind of thing it can determine us to decide to start a business on our own, especially if we have the least of experience.
There are various steps to follow when starting a recruitment company and each of them must be duly and diligently completed in order to have a smooth start. So, let’s take a look at what opening and running a staffing agency implies.
- Business planning
The first step to start any type of business, therefore an employment agency, is to have a solid business plan. Determining the type of services you want to offer, a market analysis, checking out the competition and even surveys can help you establish a budget and even make some predictions for the first one or two years.
There are countries in which the governments offer assistance when opening companies in any business field. European countries are champions if we consider the incentives they offer to new business owners. If you plan to start an employment agency in Ireland, for example, and your company enters the small and medium-sized enterprises category, you can expect several benefits, most of them related to tax cuts.
Until that step, let’s see what the next move is.
- Registering the company
OK, so the business plan is set, the budget is also established, and the money is there. You will then need an office. You can choose to buy, rent an office or share an office in one of the co-working spaces available in most countries. The last option is perhaps the cheapest, if you plan on a small recruitment company.
Then, the company registration must be completed. This will imply drafting and notarizing the company’s incorporation papers, filing them with the relevant authorities and applying for tax and VAT numbers. Opening a bank account for the company is also mandatory.
Two of the countries offering simple and cheap company registration procedures is Singapore and Hong Kong. So, if you plan on starting a business in Asia, setting up a recruitment company in Hong Kong or in Singapore could be a great idea, not to mention the talent pool there, which is awesome.
- Laws and licenses
Yes, like in any other industry, you need to consider the laws and the licenses needed to start operating the recruitment company. Usually, the employment legislation contains specific provisions related to hiring employees through recruitment agencies. Also, most of the countries will require some experience or to hire recruitment agents who have graduated special courses, but each country has its own rules.
Let’s take Germany for example: the most powerful economy in the EU is one of the most appealing countries for foreign workers, which is why both the recruitment process and the authorization process of such business here is quite simple. If you want to open a recruitment company in Germany, you will only need an authorization from the Ministry of Labor.
- Promoting your business
Of course, you will need to promote your business once you start operating. You can use traditional ways, like billboards, newspaper ads and so on, but don’t forget about the social media channels and even creating a website for your company. These last two options won’t cost you a fortune and they will prove to be the most effective.
- Paying taxes
As a company, you will need to consider the tax implications of your business. You can choose to use a tax calculator and compute your taxes in order to have an estimate, however it is best to hire an accountant who can also deal with the paperwork related to bookkeeping and filings.
If you have decided to start a recruitment company, the steps above are mandatory; however, there are cases in which other procedures and requirements must be fulfilled, this is why a thorough knowledge of the market and legislation of the country you want to operate in is essential.
